Mozambique's debt problem

By Will Ross, BBC Africa editor

China has invested heavily in Mozambique's construction industry and built the country's parliament, several government ministries and the national sports stadium, as well as major new roads. China has also loaned money for the construction of a railway to transport coal to the coast for export.

There has been concern over China's involvement in the timber business. As well as legal exports, Chinese loggers have been involved in timber smuggling and the government earlier this year said several Chinese nationals had been arrested. Hardwood exports from Africa to China have soared as supply in Asia has dwindled. Mozambique has lost nearly three million hectares - or 10% of its forests - since 2000.

Gas exploration ought to produce vast income for the government within a decade but as is the case with several other African countries there are concerns over the sustainability of Mozambique's debt - by the end of 2017 it owed more than $2bn to China.

In February it was revealed that it was more than $700m in arrears on debt repayments - much of which it had hidden from the International Monetary Fund.

Image copyrightAFPImage caption
Ramps more than 2km long lead to the bridge